15 may 2020 results review 1qcy20 abb india€¦ · abb 1qcy20 commentary signalled that it remains...

15 May 2020 Results Review 1QCY20

ABB India

HSIE Research is also available on Bloomberg ERH HDF <GO> & Thomson Reuters

Long road to recovery

We maintain SELL on ABB India Ltd. (ABB) with a TP of Rs 755/sh (42x Mar-

22E EPS). ABB business model is highly sensitive to operating leverage as Rs

3.2bn revenue shortfall (for 10days of disruption in Mar-20) led to sharp

erosion in profitability (Rs 1.1bn contribution shortfall) with

Rev/EBIDTA/APAT de-growing 18/90/90% YoY. We expect weaker

performance in 2QCY20 with 1.5months of loss of operations. ABB 1QCY20

commentary signalled that it remains well geared to serve clients only if there

is demand pick up. Muted Public/Pvt capex remains key headwind.

Weak performance: ABB posted Rev/EBIDTA/APAT miss of 10/88/89%

YoY. Due to movement restrictions ABB faced logistics issues in executing

Exports & Services order book. With clients shutting operations product

business held back deliveries. The dislocation severely impacted financial

performance. ABB has resumed limited plants operation from 4th May 2020

and is actively engaging with clients to deliver product & services.

Motion/Electrification segment were key revenue driver for 1QCY20.

Focusing on gaining market share: ABB believes that it is too early to

predict on demand recovery as target markets are gradually opening up

both locally and globally. Coming out of pandemic and backed by stimulus

Utilities Infra, Water Infra, Power Generation, Other PSU Infra, Pharma,

F&B, Chemicals and Data centers are Industry segments which may see

accelerated recovery. Fiscal stimulus will help MSME’s recover lost ground

with supply chain getting streamlined for ABB. Tier 2/3 cities have seen

limited COVID-19 disruption and demand for Electrical and Motion

products can revive in these macro markets. Robotics and Industrial

Automation will take time to recover as largely private capex driven.

Export opportunity augurs well: ABB 1QCY20 exports revenue share

reduced to 10% vs 14% for CY19. Logistics issues toward Mar-20 end

impacted export deliveries. Whilst ABB indicated that prime focus remains

on the domestic market, Middle East, Africa and Indian subcontinent have

accepted ABB products and solution. Addressable market size remains large

but ABB will cautiously expand from market to market. Over long term it

wants to balance imports and exports to reduce forex volatility.

ABB business model remains highly sensitive to demand outlook. We see

challenging 2QCY20 and slow ramp-up for 2HCY20. With clients

conserving capital and global growth outlook bleak, capex headwinds

remain. We have cut CY20E EPS estimate by 72%. We believe headwinds

are not fully priced in current rich valuations. We maintain SELL on ABB.

Key risks (1) Accelerated Government capex recovery, (2) Pickup in

private investments, and (3) INR appreciation.

Financial summary

Source: Company, HSIE Research

(Rs mn,

Dec year-end)

1Q

CY20

1Q

CY19

YoY

(%)

4Q

CY19

QoQ

(%) CY19 CY20E CY21E CY22E

Net Revenues 15,222 18,503 (17.7) 19,533 (22.1) 73,151 59,466 75,135 83,349

EBITDA 145 1,455 (90.0) 1,384 (89.5) 5,312 959 5,290 6,293

APAT 92 890 (89.7) 1,344 (93.1) 3,719 634 3,641 4,319

Diluted EPS (Rs) 0.4 4.2 (89.7) 6.3 (93.1) 17.6 3.0 17.2 20.4

P/E (x)

47.7 279.7 48.7 41.1

EV / EBITDA (x)

30.4 170.2 30.8 25.7

RoE (%)

9.9 1.8 10.0 11.1

SELL

CMP(as on 14 May 2020) Rs 837

Target Price Rs 755

NIFTY 9,143

KEY

CHANGES OLD NEW

Rating SELL SELL

Price Target Rs 755 Rs 755

EBITDA % CY21E CY22E

- -

KEY STOCK DATA

Bloomberg code ABB IN

No. of Shares (mn) 212

MCap (Rs bn) / ($ mn) 177/2,348

6m avg traded value (Rs mn) 94

52 Week high / low Rs 1,504/795

STOCK PERFORMANCE (%)

3M 6M 12M

Absolute (%) (32.2) (36.8) (32.4)

Relative (%) (7.6) (14.0) (15.8)

SHAREHOLDING PATTERN (%)

Dec-19 Mar-20

Promoters 75.00 75

FIs & Local MFs 11.67 11.61

FPIs 3.38 3.31

Public & Others 9.95 10.08

Pledged Shares 0.0 0.0

Source : BSE

Parikshit D Kandpal, CFA

[email protected]

+91-22-6171-7317

Rohan Rustagi

[email protected]

+91-22-3021-7355

Page | 2

ABB India: Results Review 1QCY20

Quarterly Financials Snapshot - Standalone

(Rs mn, Dec year-end) 1QCY20 1QCY19 YoY (%) 4QCY19 QoQ (%) CY19 CY18 YoY (%)

Net Sales 15,222 18,503 (17.7) 19,533 (22.1) 73,151 66,901 9.3

Material Cost 9,927 12,667 (21.6) 12,946 (23.3) 48,611 45,137 7.7

Employee Cost 1,633 1,575 3.7 1,465 11.5 5,796 5,295 9.5

Other Expenses 3,517 2,806 25.3 3,738 (5.9) 13,432 11,892 12.9

EBITDA 145 1,455 (90.0) 1,384 (89.5) 5,312 4,578 16.0

Depreciation 271 233 16.1 224 20.7 904 928 (2.5)

EBIT (126) 1,222 (110.3) 1,160 (110.8) 4,408 3,650 20.7

Interest 34 26 28.4 47 (28.3) 214 539 (60.4)

Other Income 458 191 139.4 384 19.2 943 840 12.3

EO Items (gain)/loss (568) -

697

697 -

PBT 866 1,387 (37.6) 800 8.3 4,440 3,951 12.4

Tax 206 497 (58.5) 153 34.7 1,418 1,410 0.6

RPAT 660 890 (25.9) 647 2.1 3,022 2,542 18.9

EO Items (gain)/loss (568) -

697

(697) -

APAT 92 890 (89.7) 1,344 (93.1) 3,719 2,542 46.3


Margin Analysis

Margin Analysis 1QCY20 1QCY19 YoY

(bps) 4QCY19

QoQ

(bps) CY19 CY18

YoY

(bps)

Material Cost

(% net sales) 65.2 68.5 (324.6) 66.3 (106.2) 66.5 67.5 (101.4)

Employee Cost

(% net sales) 10.7 8.5 221.9 7.5 322.9 7.9 7.9 0.9

Other Expenses

(% net sales) 35.4 22.1 1,327.6 28.9 655.0 18.4 17.8 58.6

EBITDA Margin (%) 1.0 7.9 (691.2) 7.1 (613.3) 7.3 6.8 41.8

Tax rate (%) 23.8 35.8 (1,201.7) 19.1 466.2 31.9 35.7 (374.1)

APAT Margin (%) 0.6 4.8 (420.6) 6.9 (627.3) 5.1 3.8 128.5


Standalone Segmental Revenue (Rs mn,

Dec year-end) 1QCY20 1QCY19 YoY (%) 4QCY19 QoQ (%) CY19 CY18 YoY (%)

Revenues (Rs mn)

Robotics & Discrete

Automation 426 796 (46.5) 652 (34.7) 2,718 2,527 7.6

Motion 5,674 7,201 (21.2) 6,848 (17.1) 26,185 22,495 16.4

Electrification 6,229 7,307 (14.8) 8,331 (25.2) 30,194 26,161 15.4

Industrial Automation 2,935 3,614 (18.8) 4,140 (29.1) 15,632 15,400 1.5

Total 15,263 27,996 (45.5) 19,971 (23.6) 74,728 66,583 12.2

EBIT (Rs mn)

Robotics & Discrete

Automation (42) 90 (146.0) 79 (152.5) 240 106 126.4

Motion 210 703 (70.1) 632 (66.7) 2,416 643 275.5

Electrification 397 641 (38.1) 998 (60.2) 2,971 756 292.8

Industrial Automation 28 365 (92.3) 10 176.5 962 725 32.7

Total 594 2,302 (74.2) 1,719 (65.4) 6,589 2,230 195.4

EBIT Margin (%)

Robotics & Discrete

Automation (9.8) 11.4 (2,114.1) 12.2 (2,194.1) 8.8 4.2 463.1

Motion 3.7 9.8 (605.3) 9.2 (551.9) 9.2 2.9 636.7

Electrification 6.4 8.8 (239.9) 12.0 (560.4) 9.8 2.9 694.9

Industrial Automation 1.0 10.1 (914.7) 0.2 71.5 6.2 4.7 144.8

Total 3.9 8.2 (432.8) 8.6 (471.7) 8.8 3.3 546.8


Revenue – Rs 15.2bn (10%

miss)

EBITDA – Rs 145mn (88%

miss) and margin of 1%

(597bps miss)

Other exp (as % sales)

expanded 1328/655bps

YoY/QoQ partly due to Rs

350mn impact of Rupee

weakening against USD/

EUR/CHF and metal

prices, while Employee

expenses expanded by

222/323 YoY/QoQ, which

was partly offset by

Material expenses

contraction by 325/106bps,

driven by localization

Other income at Rs 458mn

(139/19% YoY/QoQ)

includes interest refund

from IT dept of Rs 180mn

APAT: Rs 92mn (89%

miss). Dismal performance

was led by lower volumes

including service revenue

and unfavourable mix

Reported PAT stood at Rs

660mn as ABB reversed

excess provision of Rs

568mn on sale of solar

inverter business

The Company continued to

maintain a stable cash

position of Rs 14.64bn

Robotics segment is seeing

significant demand erosion

due to weak automotive

capex

Page | 3


Quarterly Order Book Movement (Rs mn)

Source : Company, HSIE Research

1QCY20 Segmental EBIT

Source : Company, HSIE Research; RDA – Robotics & Discrete Automation, MO – Motion, EE –

Electrification, IA – Industrial Automation

1QCY20 Segmental Margins (%)



-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

4Q

CY

18

1Q

CY

19

2Q

CY

19

3Q

CY

19

4Q

CY

19

1Q

CY

20

Order Inflow (Rs mn) Order Book (Rs mn)

Despite weak economic

sentiments, ABB secured

orders worth Rs 19.5bn in

1QCY20 (Rs 69.7bn in

CY19) and has a

outstanding order book of

Rs 44.4bn which provides

short term revenue

visibility

During 1QCY20 Motion

witnessed 30% YoY

increase in orders led by a

large order from Railways

for traction converters

Robotics/Industrial

automation segments are

facing demand headwinds

as corporates preserve

cash, especially the auto

& auto ancillary segment

which drives bulk of the

Robotics orders. Hence,

Robotics orders slipped by

45%

Electrification has best

EBIT margins for 1QCY20

followed by Motion

243

2,540

6,770

2,996

(100)

(50)

-

50

100

150

200

250

300

350

400

450

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

RD

A

MO EE

IA

Cap. Employed (Rs mn) - LHS EBIT (Rs mn) - RHS

(42)

210

397

28

-12

-10

-8

-6

-4

-2

0

2

4

6

8

(100)

(50)

-

50

100

150

200

250

300

350

400

450

RD

A

MO EE

IA

EBIT (Rs mn) - LHS Margin (%) - LHS

Page | 4


Capital Employed – 1QCY20 (Rs 35.2bn)



RDA

1%

MO

7%

EE

19%

IA

8%

Unallocated

65%

Page | 5


Key Assumptions & Estimates

Key Assumptions CY18 CY19E CY20E CY21E CY22E Comments

Total Revenue 66,901 73,151 59,466 75,135 83,349 4.4% revenue CAGR over CY20E-22E

Growth (%) 9.8 9.3 (18.7) 26.3 10.9

EBIDTA 4,578 5,312 959 5,290 6,293

5.8% EBIDTA CAGR over CY20E-22E lead by

stabilisation of margins post COVID during CY21E-

22E

EBIDTA margin (%) 6.8 7.3 1.6 7.0 7.6

EBIDTA margins to gradually stabilise as

Robotic/Industrial Automation demand picks-up and

higher capacity utilisation post CY20. Reduction in

competitive intensity in Electrical and Motion segment

will also aid margins recovery

Depreciation 928 904 1,084 1,195 1,343

Financial Charges 539 214 136 150 130 Net cash status

Other Income 840 943 1,382 975 1,017 Driven by lower cash position and low interest rates;

offset partially by treasury gains

Extraordinary Loss/(Gain) - 697.0 (568.0) - -

PBT 3,951 4,440 1,689 4,920 5,837 9.5% PBT CAGR over CY20E-22E

PBT margin (%) 5.9 6.1 2.8 6.5 7.0

Tax 1,410 1,418 487 1,279 1,518

Tax rate (%) 35.7 31.9 28.8 26.0 26.0 ABB has adopted new lower corporate tax rate

RPAT 2,542 3,022 1,202 3,641 4,319 12.6% RPAT CAGR over CY20E-22E largely driven by

lower tax/margin improvement

Net margin (%) 3.8 4.1 2.0 4.8 5.2

Extraordinary Loss/(Gain) - 697.0 (568.0) - -

Adjusted PAT 2,542 3,719 634 3,641 4,319

Gross Block Turnover 6.0 5.8 4.2 4.8 4.8

Debtor days 92 97 96 98 98

CFO - a 6,255 6,669 (57) 2,563 3,380

CFI - b 1,437 (3,907) (2,163) (790) (598)

FCFF 7,692 2,762 (2,220) 1,773 2,782

CFF - c (7,937) (1,467) (1,463) (1,505) (1,620)

Total change in cash - a+b+c (245) 1,295 (3,682) 268 1,162

Source: HSIE Research

Change in Estimates

Standalone

Rs Mn

CY20E CY21E CY22E

Old Revised % Chg Old Revised % Chg Old Revised % Chg

Net Sales (Rs mn) 61,472 59,466 -3.26 75,135 75,135 0.00 83,349 83,349 0.00

EBITDA (Rs mn) 3,592 959 -73.31 5,290 5,290 0.00 6,293 6,293 0.00

EBIDTA Margin (%) 5.8 1.6 -423.12 7.0 7.0 0.00 7.5 7.5 0.00

Adj PAT (Rs mn) 2,268 634 -72.04 3,641 3,641 0.00 4,319 4,319 0.00

AEPS (Rs) 10.7 3.0 -72.04 17.2 17.2 0.00 20.4 20.4 0.00

TP (Rs/share) 755 755 0.00


We have recalibrated CY20E EBIDTA estimate lower to factor in likely higher than

expected revenue shortfall during 2QCY20 on account COVID-19 lead disruptions.

Loss of operating leverage and forex loss (imports become costlier due to INR

depreciation) will erode EBIDTA margins. We have cut our CY20E EPS estimates by

72% while retaining CY21/22E estimates.

Page | 6


Outlook and valuation

Maintain SELL– Target Price of Rs 755/sh

Whilst ABB has strong credential for participating in India’s Industrial/Process

Automation and demand from Motion/Electrical segments, weak economic

recovery poses growth challenge. Low demand has resulted in highly

competitive intensity in respective segments. COVID-19 challenges will further

decelerate economic recovery by 4-6qtrs.

ABB is looking at diversifying and adding more Industries beyond Autos for the

Robotics and Discrete Automation. The efforts will take time to bear fruit.

Exports opportunity is improving, yet not significantly leveraged by Parent, as

Global Demand remains muted and the company’s prime focus on the domestic

market. COVID-19 challenges will further reduce exports demand as global GDP

growth is expected to contract sharply for CY20 with multiple countries entering

into recession.

Further re-rating is contingent on India attracting global manufacturing tag with

imposition of lower corporate tax rates. With strong domestic demand, low

labour cost and qualified manpower, India presents unique proposition to Global

companies to relocate manufacturing both to meet domestic demand and for

serving export markets.

Stimulus-led growth with structural and economic reforms are expected to

provide growth opportunities across transportation and infrastructure segments.

National Infrastructure Pipeline and Rs 20tn fiscal/monetary stimulus augurs

well for recovery. Private capex remain an overhang.

Valuation methodology: We value ABB’s at 42x Mar-22E EPS. With most of the

positives already priced in we maintain SELL with target price of Rs 755/sh.

SOTP Valuation

Business Valuation Methodology Multiple Mar-22E EPS Rs/Sh

ABB Continuing

Business P/E multiple on Mar-22E Earnings 42 17.9 755


With most of the positives

already priced in we

maintain SELL with target

price of Rs 755/sh

Page | 7


Financials Standalone Income Statement Year ending December CY16 CY17 CY18 CY19 CY20E CY21E CY22E

Net Revenues 86,422 60,937 66,901 73,151 59,466 75,135 83,349

Growth (%) 6.2 (29.5) 9.8 9.3 (18.7) 26.3 10.9

Material Expenses 56,132 41,030 45,137 48,611 39,398 50,164 55,072

Employee Expenses 7,503 5,187 5,295 5,796 6,331 6,843 7,496

Other Operating Expenses 15,842 10,575 11,892 13,432 12,779 12,838 14,488

EBIDTA 6,945 4,146 4,578 5,312 959 5,290 6,293

EBIDTA (%) 8.0 6.8 6.8 7.3 1.6 7.0 7.6

EBIDTA Growth (%) (2.5) (40.3) 10.4 16.0 (82.0) 451.9 19.0

Depreciation 1,510 1,012 928 904 1,084 1,195 1,343

EBIT 5,436 3,133 3,650 4,408 -125 4,095 4,950

Other Income 1,216 777 840 943 1,382 975 1,017

Interest 919 572 539 214 136 150 130

EO items

- - 697 - 568 - -

PBT 5,733 3,338 3,951 4,440 1,689 4,920 5,837

Tax 1,988 1,084 1,410 1,418 487 1,279 1,518

RPAT 3,745 2,255 2,542 3,022 1,202 3,641 4,319

EO items (net of tax)

- - 697 (568) - -

APAT 3,745 2,255 2,542 3,719 634 3,641 4,319

APAT Growth (%) 24.9 (39.8) 12.7 46.3 (83.0) 474.2 18.6

EPS 18 10.6 12.0 17.6 3.0 17.2 20.4

EPS Growth (%) 24.9 (39.8) 12.7 46.3 (83.0) 474.2 18.6


Standalone Balance Sheet As at December CY16 CY17 CY18 CY19 CY20E CY21E CY22E

SOURCES OF FUNDS

Share Capital 424 424 424 424 424 424 424

Reserves 32,443 35,645 39,649 34,777 34,723 37,009 39,838

Total Shareholders Funds 32,867 36,069 40,073 35,201 35,147 37,433 40,262

Total Debt 6,000 6,042 21 71 0 0 0

Other Non Current Liabilities 560 465 358 485 485 485 485

Deferred Taxes (1,304) (1,173) (1,150) (1,103) (1,103) (1,103) (1,103)

Misc. Items

1,880 1,880 1,880

TOTAL SOURCES OF FUNDS 38,124 41,403 39,302 34,654 36,409 38,695 41,524

APPLICATION OF FUNDS

Net Block 12,549 12,187 8,931 7,417 9,778 10,248 10,420

CWIP 678 1,165 831 595 695 795 895

Investments 162 2 2 - - - -

Other Non Current Assets

Total Non-current Assets 13,389 13,353 9,763 8,012 10,473 11,043 11,315

Inventories 9,403 11,536 9,279 8,617 8,095 10,308 11,316

Debtors 29,707 27,878 16,869 19,475 15,640 20,173 22,379

Cash & bank balances 11,892 17,621 14,752 15,977 14,174 14,443 15,604

Other Current Assets 11,617 17,320 10,935 19,598 12,056 13,012 14,044

Total Current Assets 62,619 74,354 51,834 63,668 49,966 57,936 63,343

Creditors 34,860 43,160 26,757 36,120 22,883 29,136 31,987

Other Current Liabilities & Provns 3,025 3,145 2,334 2,415 2,657 2,657 2,657

Total Current Liabilities 37,885 46,305 29,090 38,535 25,540 31,793 34,644

Net Current Assets 24,734 28,050 22,744 25,133 24,427 26,143 28,700

Net assets pertaining to discontinued

operations/Assets held for sale - - 6,795 1,509 1,509 1,509 1,509

TOTAL APPLICATION OF FUNDS 38,124 41,403 39,302 34,654 36,409 38,695 41,524


Page | 8


Standalone Cash Flow Year ending December CY16 CY17 CY18 CY19 CY20E CY21E CY22E

PBT 5,761 6,218 7,942 4,440 1,689 4,920 5,837

Non-operating & EO items (142) (258) (24) (211) (1,382) (975) (1,017)

Interest expenses 849 773 767 291 136 150 130

Depreciation 1,510 1,580 1,458 1,040 1,084 1,195 1,343

Working Capital Change 2,821 2,403 (1,641) 2,846 (1,096) (1,448) (1,395)

Tax paid (2,172) (2,799) (2,248) (1,738) (487) (1,279) (1,518)

OPERATING CASH FLOW ( a ) 8,626 7,917 6,255 6,669 (57) 2,563 3,380

Capex (1,040) (1,847) (2,360) (1,215) (3,545) (1,765) (1,615)

Free cash flow (FCF) 7,586 6,070 3,894 5,454 (3,602) 798 1,765

Investments (5) (2,462) 2,827 1 - - -

Non operating income 363 1,103 971 (2,693) 1,382 975 1,017

INVESTING CASH FLOW ( b ) (681) (3,205) 1,437 (3,907) (2,163) (790) (598)

Share capital Issuance - - - - - - -

Dividend payment (944) (1,020) (1,138) (1,176) (1,256) (1,355) (1,490)

Debt Issuance 0 83 (6,000) - (71) - -

Interest expenses (845) (773) (799) (291) (136) (150) (130)

FINANCING CASH FLOW ( c ) (1,788) (1,710) (7,937) (1,467) (1,463) (1,505) (1,620)

NET CASH FLOW (a+b+c) 6,156 3,001 (245) 1,295 (3,682) 268 1,162

Opening Cash & Equivalents 5,736 11,892 17,621 14,752 15,977 14,174 14,443

Closing Cash & Equivalents 11,892 17,622 14,752 15,977 14,174 14,443 15,604

Key Ratios

CY16 CY17 CY18 CY19 CY20E CY21E CY22E

PROFITABILITY (%)

GPM 35.0 32.7 32.5 33.5 33.7 33.2 33.9

EBITDA Margin 8.0 6.8 6.8 7.3 1.6 7.0 7.6

EBIT Margin 6.3 5.1 5.5 6.0 (0.2) 5.5 5.9

APAT Margin 4.3 3.7 3.8 5.1 1.1 4.8 5.2

RoE 11.9 6.5 6.7 9.9 1.8 10.0 11.1

Core RoCE 12.9 8.7 9.9 14.2 (0.4) 13.3 14.9

RoCE 11.6 6.5 7.0 10.3 2.0 9.8 10.8

EFFICIENCY

Tax Rate (%) 34.7 32.5 35.7 31.9 28.8 26.0 26.0

Asset Turnover (x) 6.4 4.3 6.0 5.8 4.2 4.8 4.8

Inventory (days) 40 69 51 43 50 50 50

Debtors (days) 125 167 92 97 96 98 98

Payables (days) 147 259 146 180 140 142 140

Cash Conversion (days) 18 (22) (3) (40) 5 7 7

Other Current Assets (days) 49 104 60 98 74 63 62

Other Current Liab (days) 13 19 13 12 16 13 12

Net Working Capital Cycle (Days) 54 62 44 46 63 57 57

Debt/EBITDA (x) 0.9 1.5 0.0 0.0 0.0 0.0 0.0

Net D/E (0.2) (0.3) (0.4) (0.5) (0.4) (0.4) (0.4)

Interest Coverage 5.9 5.5 6.8 20.6 - - -

PER SHARE DATA

EPS (Rs/sh) 17.7 10.6 12.0 17.6 3.0 17.2 20.4

CEPS (Rs/sh) 24.8 15.4 16.4 21.8 8.1 22.8 26.7

DPS (Rs/sh) 4.5 4.8 5.4 5.5 5.9 6.4 7.0

BV (Rs/sh) 155 170 189 166 166 177 190

VALUATION

P/E 47.4 78.7 69.8 47.7 279.7 48.7 41.1

P/BV 5.4 4.9 4.4 5.0 5.0 4.7 4.4

EV/EBITDA 24.7 40.0 35.5 30.4 170.2 30.8 25.7

OCF/EV (%) 5.0 4.8 3.8 4.1 (0.0) 1.6 2.1

FCF/EV (%) 4.4 3.7 2.4 3.4 (2.2) 0.5 1.1

FCFE/Market Cap (%) 3.8 3.0 (1.6) 2.9 (2.1) 0.4 0.9

Dividend Yield (%) 0.5 0.6 0.6 0.7 0.7 0.8 0.8


Page | 9


Rating Criteria

BUY: >+15% return potential

ADD: +5% to +15% return potential

REDUCE: -10% to +5% return potential

SELL: > 10% Downside return potential

Date CMP Reco Target

15-Nov-19 1,469 NEU 1,534

10-Jan-20 1,372 NEU 1,219

13-Feb-20 1,274 NEU 1,219

2-Mar-20 1,185 ADD 1,254

24-Apr-20 896 SELL 755

5-May-20 878 SELL 755

15-May-20 837 SELL 755

From 2nd March 2020, we have moved to new rating system

RECOMMENDATION HISTORY

600

800

1,000

1,200

1,400

1,600

Ma

y-1

9

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-1

9

Dec

-19

Jan

-20

Feb

-20

Ma

r-2

0

Ap

r-2

0

Ma

y-2

0

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15 may 2020 results review 1qcy20 abb india€¦ · abb 1qcy20 commentary signalled that it remains...

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